Directors of 'pyramid scheme' freed on bail

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Two company directors arrested over an alleged pyramid scheme involving 15,000 people have been released on bail.

Detectives from the Commercial Crime Bureau are now searching for two men and a woman in connection with the operation.

Skin Club and Turbo Rich Development, who share the same directors and share holders, are believed to have been running a pyramid scheme.

Turbo Rich recruited people to sell anti-ageing products. Once recruited each individual had to buy $500 worth of cosmetics. After selling them they would buy more products and receive coupons for products and training. The more people they recruited and goods they sold, the bigger the bonus.

Detectives raided company premises in Tsim Sha Tsui on Thursday. The other office is in Yau Ma Tei. Police said they had frozen $16.2 million in cash and two properties worth $3 million.

One 35-year-old man, who was arrested at the office, and a 41-year-old woman, arrested at Chek Lap Kok airport, were both released after posting $100,000 cash bail and $100,000 surety. They have to report back on Thursday.